In connection with the coming Holidays Act, which will become effective on 1 September 2020, it has been decided that the earned vacation money by the wage earners during the transition year until the new law becomes effective, will be managed in a fund where LD has the overall responsibility. The fund's official name is Lønmodtagernes Fond for Tilgodehavende Feriemidler. In everyday speech: Lønmodtagernes Feriemidler.
With the establishment of the new fund, LD will in the future manage two separate funds, namely Lønmodtagernes Feriemidler and Lønmodtagernes Dyrtidsfond. In this connection, LD is changing its name to LD Pensions.
Accommodates wishes of both employees and employers
The new fund accommodates the wishes of both the employees and the employers. It ensures the employees’ vacation money and furthermore allows the employers to retain the means as long as needed - but no later than retirement age of the individual.
Both funds in LD Pensions’ portfolio aim to increase the means as much as possible, thus building a supplementary savings that can be paid out, when the employee leaves the labour market.
Dorrit Vanglo, CEO of LD Pensions, states:
"With Lønmodtagernes Feriemidler, we now have the responsibility for a new fund, strangely enough almost exactly forty years after LD was established. Lønmodtagernes Feriemidler is very similar to what we presently already know and work with, so we look forward to continuing the solid results, now with two funds in the portfolio."
About Lønmodtagernes Feriemidler
- To manage and administrate the vacation money that the employees earn during the transition year until the new Holidays Act becomes effective, it has been decided to establish Lønmodtagernes Feriemidler. LD manages the administration with the assistance of ATP, but the overall responsibility lies with LD.
- Lønmodtagernes Feriemidler is expected to have a balance of DKK 100 billion.
About Lønmodtagernes Dyrtidsfond
- Lønmodtagernes Dyrtidsfond manages DKK 39 billion on behalf of 600,000 members. For a full-time employee, who was employed during the period from 1977-1979, approximately DKK 4,000 was paid into an LD account. Over the years, this amount has increased to more than DKK 145,000 (DKK 92,000 after tax).
- The money is paid out as a lump sum when requested by the member, if the member is 60 years old or for other reasons is entitled to payment.
About LD and LD Pensions
- LD has managed the assets in Lønmodtagernes Dyrtidsfond since 1980.
- Now, 40 years later, LD will be responsible for a new fund with assets amounting to approximately DKK 100 billion. This time, the task is also to ensure the means of the employees, which can be achieved by using the significant investment advantages there can be found when managing common assets.
About the new Holidays Act
- When the new Holidays Act become effective on 1 September 2020, a wage earner will have earned holidays in accordance with both the old and the new rules: Therefore they will, in principle, be entitled to double holiday leave in a single year. Since this is not appropriate for the labour supply, the social economy or the liquidity of the employers, it has been decided that Lønmodtagernes Feriemidler will manage the vacation money earned under the old rules during the period 1 September 2019 to 31 August 2020 until it can be paid out - typically at retirement age.